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GBP/CAD Exchange Rate Fluctuates on Brexit, NAFTA Optimism

Last week’s high: C$1.7196

Last week’s low: C$1.6926

Pound Rebounds on Upbeat Brexit Outlook

The Pound to Canadian Dollar exchange rate got off to a strong start last week, due to some broad Brexit optimism following upbeat remarks from the UK’s Brexit minister Dominic Raab and German Chancellor Angela Merkel on the chances of a deal still being reached.

This helped Sterling to bounce back from the previous week’s losses, and opened the door to further gains in the middle of the week on the back of some robust UK retail data.

However the pairing fell back in the latter half of the week as the Canadian Dollar surged following optimism that the US and Canada may be close to reaching an agreement in NAFTA renegotiations.

These gains were then bolstered on Friday as Canada’s GDP figures came in higher-than-expected in July.

CAD Outlook: Slowing UK Private Sector Growth to Weaken Sterling?

Looking ahead, the Pound could come under pressure in the first half of this week’s session with the publication of the UK’s latest PMI figures. Economists currently forecast growth will have continued to slow across the UK’s private sector last month.

Meanwhile the focus for CAD investors this week will be the release of Canada’s latest labour figures, with the Canadian Dollar potentially strengthening if the unemployment rate falls back below 6% as forecast.

Key Events

1st October

09:30 UK Manufacturing PMI (Sep)

14:30 CA Manufacturing PMI (Sep)

2nd October

09:30 UK Construction PMI (Sep)

3rd October

09:30 UK Services PMI (Sep)

4th October

15:00 CA Ivey PMI (Sep)

5th October

08:30 UK Halifax House Price Index (Sep)

13:30 CA Trade Balance (Aug)

13:30 CA Unemployment Rate (Sep)

 

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To keep up to date with the Canadian Dollar, visit the CAD blog in our Currency News section.

Alastair Archbold

Currency Dealer

aja@fcgworld.co.uk

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